On a broad basis, we are getting ready to rally, but not until the latter part of the month. That is because fund managers have not committed their cash positions and they will not do so until they can show a quarter-end statement that reflects an increase in cash. So between now and the 29th or so, there will be a game of chicken being played. If the prices drop too much, that will affect their greed and they may want to nibble. If prices stay flat, they will wait, and if they rise, they may sell a little. It is almost the reverse of last year, when we had a rally going through the New Year, followed by profit taking of all of those incredible gains from 1999, not to be paid until April 2001.
We may have a rally in January if that is the case, in my humble opinion. In either event, I think Compaq is garnering more attention now that it ever did and that is only positive, as it is making money and a good deal of it. The cloud may loom until further guidance is clarified, but not for long thereafter. I am now holding Compaq, Sun Microsystems (my biggest position today with a basis of about 32), Cypress Semiconductor, Jabil Circuit, and Flextronics Corporation. |
